Friday, April 16, 2010

Goldman Sachs (NYSE:GS) News Pushes Gold Down

Goldman Sachs fraud charges puts downward pressure on gold prices

Gold plunged on the news Goldman Sachs (NYSE:GS) was charged with fraud by the Securities and Exchange Commission, causing the metal to fall by over $24 in response to uncertainty on whether any other bad news is coming out of the industry.

Most of this is related to concerns over volatility in the short term, including the ongoing Greece sovereign debt crisis, which continues to weigh on gold investors.

Investors aren't sure how this will all play out, and that is causing the dumping of gold, although it doesn't really make sense to dump the safest asset you can hold in uncertain times.

That means it's really the traders and not the gold investors who are fleeing the gold market, and that'll turn around soon enough once this plays out.